The decision was taken with the exclusive vote of the clubs after detailed coordinated work and presented by a technical group formed by team leaders. The selection process started more than 10 months ago and was marked by the union of CBF and the clubs for strategic definitions in relation to the projection of the Brazilian Championship abroad. CBF gave up any economic participation in the contract in favor of the clubs.
Based on these aspects, the clubs opted, in this first phase, for the proposal of the Global Sports Rights Management (GSRM) companies for international rights for open TV, closed TV, Pay Per View, internet and OTT / streaming; and for the joint proposal of the firms Zeus Sports Marketing and Stats Perform for international rights for betting streaming.
The minimum guarantee offer tha has been offered, according to Máquina do Esporte, was US$ 15.6 million for the term of commercialization of rights between 2020 and 2023. It was not the most valuable proposal received by clubs for this property.
Now, the consortium will have to detail the action plan for marketing the rights to bookmakers. In the bidding document sent to the agencies, the clubs demanded that the bidders bear all the costs of producing the material. Until 2022, however, Globo will provide the images of the games, which would reduce production costs.
In addition, it will now be necessary to present the delivery dates of the project, the definition of the marketing strategy, and a global billing target. The clubs will have a share on the profit of the operation.
Unlike bidding for broadcasting rights abroad, there is no obligation for the companies that won the competition for bookmakers to invest in promoting the championship. They will hitch a ride on what is done by GSRM, that won the other bidding.
This is one of the reasons that the minimum guarantee given by companies to clubs for a period of four years is bigger for betting (US$ 15.6 million) than for international rights (US$ 10 million).
Before the definition, the business models of each of the interested companies were evaluated in relation to the ways of product distribution, experience in projects of this nature, the remuneration system of the clubs and the capacity for innovation in the technological area.
From now on, the process enters its second phase, when the selected companies will undergo validation of the scope of work, compliance with governance rules, presentation of financial guarantees and formalization of contractual instruments. Until this phase is strictly completed, clubs and CBF do not consider the process completed.
The clubs' intention is to enter into four-year contracts (2020, 2021, 2022 and 2023) with the main goal of increasing the visibility of the Brazilian Championship abroad, in addition to the financial income to the clubs involved.
The selected business models will include payment of a minimum guarantee and, in relation to international transmission rights, revenue sharing by sales performance. Investments are also planned in the areas of branding, visual identity, activation actions in the global market and combating piracy. In addition, they guarantee clubs shared management of marketing strategies and control, through audit, of the results obtained.
Source: GMB
